Palestinian Territory – The Israeli and US plans aiming to transform the Gaza Strip into an economy lacking financial sovereignty are extremely concerning. The plans suggest abolishing cash currency and enforcing a transition to a digital economy managed by external entities aligned with Israel.
This would change access to money and basic transactions from a fundamental right into a revocable privilege, making food, medicine, and shelter dependent on security decisions and military assessments. It reflects a coercive restructuring of daily life aimed at pushing the population toward poverty and displacement, managed through technology.
After over two years of financial blockade, Liran Tancman, an Israeli businessman and former officer in Israeli Intelligence Unit 8200, who has been involved with the Gaza Humanitarian Foundation (GHF), said at an event in Washington that rebuilding Gaza depends on restoring its digital and economic connectivity. He outlined a vision for creating a "secure digital backbone" to support electronic payments, education, and financial services, alongside an "Amazon-like logistics system". This approach aims to transition the economy from a rights-based framework to one focused on operational and security control.
Creating a digital financial system under Israeli control could serve as a powerful coercion tool against Palestinians, especially journalists, activists, and human rights defenders
Introducing digital wallets as a technical solution for reconstruction functions as a cover for a new phase of engineering control over the population and increasing economic reliance on Israel. This strategy transforms financial technology into a programmable instrument for collective regulation, enabling real-time monitoring, arbitrary restrictions, and selective freezing of funds amidst ongoing blockade and occupation, all while lacking Palestinian sovereignty over data, financial systems, operational conditions, or options to object.
Subjecting the right of access to financial resources to a security authority, whether directly or indirectly, undermines the core of economic and social rights. It damages the right to food and human dignity and breaches international humanitarian law, which prohibits collective punishment and criminalising the population. Additionally, it violates the prohibition on the use of starvation as a warfare tactic and conflicts with the fundamental obligation to protect civilians and guarantee their access to essential survival needs.
Any digital infrastructure established under occupation or international tutelage without full Palestinian sovereignty over data and financial systems risks becoming a tool for collective control and subjugation. Israel has frequently enforced arbitrary movement restrictions based on vague and non-appealable security reasons, raising fears that similar restrictions could extend to access to financial resources.
Euro-Med Monitor warns that creating a digital financial system under Israeli control could serve as a powerful coercion tool against Palestinians, especially journalists, activists, and human rights defenders. Digital wallets might be frozen based on a single decision, or individuals could be assigned broad security labels, resulting in the loss of access to funds without proper oversight, due process, or remedies. This situation risks making essential rights to food, medicine, and shelter dependent on unchecked security judgments.
Israel's extensive security classification system for Palestinians, which designates hundreds of thousands as having political or national affiliations, could potentially be used as a financial weapon under such a framework to block access to funds and enable coercion. This situation is similar to the current restrictions on travel for medical care or movement freedom, often justified by "lack of security approval," despite the lack of clear standards or real chances to contest these decisions.
The threat goes beyond simply denying funds; it involves turning the economy into a network of conditions and restrictions. Basic services would become dependent on political and security compliance, while aid, salaries, and trade could be used as tools for classification. People would be tracked through digital records that decide their access to essential needs. This method risks reinforcing arbitrary discrimination and could lead to collective punishment that affects both individuals and groups.
Restricting the development of advanced internet services to areas like the so-called "New Rafah," combined with partial reconstruction efforts, raises concerns about using technology as a pressure tool to alter demographics and enforce coercive changes. Digital services risk becoming a privilege tied to geographic location rather than a universal public right, thereby weakening the principles of non-discrimination and equitable access to services.
Euro-Med Monitor emphasises Tancman's crucial role in the GHF, which is associated with contentious aid distribution methods amid the Gaza genocide. Field data indicate that the foundation's policies helped engineer starvation in the enclave, resulting in about 1,200 civilian deaths and injuries to thousands more during food access efforts. He is also among those who suggested tying aid distribution to "biometric" checks, effectively turning relief efforts into mechanisms for data gathering, coercion, and security control.
Any digital or economic initiative that overlooks the occupation's realities and provides the occupying power with more control tools over the population's lives does not contribute to rebuilding Gaza or facilitating recovery. Instead, it solidifies an illegal system of domination and risks turning technology into a means to prolong violations and maintain the blockade in a "smart" manner. In this form, the blockade becomes programmable, with punishment that is swift and direct, serving as leverage to drive the population into poverty, displacement, and uprooting by limiting livelihoods and linking survival to security policies.
The reconstruction efforts and any transitional phase must be grounded in respect for international humanitarian law and human rights law, guarantee full Palestinian sovereignty over resources, systems, and data, and ensure the separation of humanitarian arrangements from security and intelligence functions.
Euro-Med Monitor underscores the prohibition on linking any financial services, humanitarian aid, or access to basic necessities to "biometric" verification, security classifications, or political conditions. It advocates adopting the principle of data minimisation and preventing the transfer or sharing of data with any third party, particularly security bodies or companies contracted with them.
Since October 2023, Israel has barred all cash entries into Gaza and enforced a strict financial blockade, resulting in the closure of all bank branches during the genocide. Although some branches later reopened partially, they were still not allowed to bring in cash, thereby preventing cash withdrawals.
Euro-Med Monitor urges rejection of any financial or digital arrangements imposed on Palestinians under occupation or made in their name without real Palestinian sovereignty, independent civil representation, and enforceable oversight and appeal processes. The idea of "consent" in the context of occupation lacks legitimacy as long as Palestinians do not control money and data.
Any system that does not guarantee full Palestinian sovereignty over data, infrastructure, standards, and governance, and that grants the occupying power or its agents the ability to access, disable, or freeze operations, remains an unlawful instrument of control, regardless of any humanitarian or developmental framing.
All digital systems should undergo regular independent audits focusing on privacy, cybersecurity, and human rights impacts, with the results openly published. Full transparency is required regarding funders, owners, operators, contractors, and contractual conditions. Euro-Med Monitor calls for safe non-digital alternatives and opposes making survival or access to services dependent on digital wallets, which could exclude vulnerable groups or those without connectivity or technical means.
The establishment of independent and effective appeal mechanisms with well-defined jurisdiction, competent judicial authority, and quick decision-making regarding asset freezes or transaction restrictions is crucial. These mechanisms should ensure transparency in operational standards and objection procedures and require that decisions be reasoned.
Euro-Med Monitor urges the establishment of an independent Palestinian civil authority to govern the financial and technological systems without interference from the occupation. It emphasises that genuine economic progress depends on lifting unlawful restrictions on crossings, cash flow, goods, and communications, rather than replacing a physical blockade with a "smart" digital one that increases dependency and perpetuates violations.
